State whether the following statements are true, false, provide a brief reasoning to support your answer.

1. The share of labor income in GDP is much smaller than the share of capital income.

2. The balanced budget multiplier is equal to one.

3. If the nominal exchange rate between the Canadian dollar and the American dollar is 2, it means that goods are twice as expensive in Canada as in the United States.

4. Budget deficit causes trade deficit.

5.In the medium run, prices and output always return to the same value after a demand shock.

6. Capital accumulation through saving and investment can explain long run growth.